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Posted on Aug 05, 2024

Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is an effect

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Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is an effect to Retained earnings, indicate the account title. Leave the cell blank if there is no effect.)

SUN CORPORATION

Accounting Equation

Event

Assest

Liabilities

Stockholders Equity

Cash

Dividends Payable

Preferred Stock

Common Stock

Paid-in Capital in Excess of Preferred Stock

Paid-in Capital in Excess of Common Stock

Treasury Stock

Retained Earnings

Account Titles for Retained Earnings

Year 1

Jan.5

Jan.12

Apr.5

Dec.31

Bal.

Year 2

Feb.15

Mar.3

May 5

Dec.31

Bal.

Prepare the stockholders equity section of the balance sheet at December 31, Year 1.

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Sun Corporation received a charter that authorized the issuance of 114,000 shares of \$5 par common stock and 21,000 shares of $75 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 17,100 shares of the $5 par common stock for $7 per share. 12 Sold 2,100 shares of the 5 percent preferred stock for $85 per share. Apr. 5 Sold 22,800 shares of the $5 par common stock for $9 per share. Dec.31 During the year, earned $317,200 in cash revenue and paid $241,900 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10 , Year 2. Year 2 Feb.15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,150 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 600 shares of the common stock as treasury stock at \$10 per share. Dec.31 During the year, earned $246,400 in cash revenues and paid $174,500 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the stockholders' equity section of the balance sheet at December 31, Year 1. c. Prepare the balance sheet at December 31, Year 2. Sun Corporation received a charter that authorized the issuance of 114,000 shares of \$5 par common stock and 21,000 shares of $75 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 17,100 shares of the $5 par common stock for $7 per share. 12 Sold 2,100 shares of the 5 percent preferred stock for $85 per share. Apr. 5 Sold 22,800 shares of the $5 par common stock for $9 per share. Dec.31 During the year, earned $317,200 in cash revenue and paid $241,900 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10 , Year 2. Year 2 Feb.15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,150 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 600 shares of the common stock as treasury stock at \$10 per share. Dec.31 During the year, earned $246,400 in cash revenues and paid $174,500 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the stockholders' equity section of the balance sheet at December 31, Year 1. c. Prepare the balance sheet at December 31, Year 2